Transfer of Group PP - help

david78

My partner wants to move her group personal pension plan (GPP) from her previous employer to Hargreaves Lansdown's (HL) SIPP. The administrator for the GPP is Allied Dunbar (now Zurich Life).

Having sent off the forms and waited, we now have a letter from HL saying they are returning the application form because Allied Dunbar have "confirmed" that the existing pension plan is an "occupational pension plan" and my partner needs to get advice before it can be moved.

Can anyone comment.

Is a GPP an occupational plan? (I thought it was just a personal pension plan).

HL have a sister company which could provide the advice but we have no idea how much this will cost. The pension transfer value is £19k. Can anyone give information on likely/typical cost.

Any help will be most appreciated.

David.

dunstonh

A group personal pension in not an occupational scheme and you do not need advice.

Double check that it is actually a group PP and not a money purhase scheme. The latter is classed as an occ scheme. They can be easily mistaken as an insurance company is usually involved with both and there are a range of investment funds.

Pension transfers from occ scheme will be expensive on fee only basis. There are transfer analysis costs that the advisor pays for before they even recommend a product. There is a lifetime liability for the advice and its a high risk advice area so PI costs are higher if you transact in this area. I wouldnt be surprised to see fees in the region of £750 to £1200.

EdInvestor

Hello David

This is not the first time HL have been reported as requiring unnecessary IFA involvement in transfers to SIPPs.

You may like to consider a different low cost SIPP provider.

dunstonh

Or you may like to query it with HL.

They may be totally correct. They may have insufficient documentation and what they have may look like a COMP (for example) rather than a GPP.

Changing SIPP provider without confirming things is a extreme.

Pal

The advice requirement is nothing to do with the SIPP. It is to do with transferring out of the existing policy. That said, HL may well be talking rubbish anyway.

Are you sure it is a GPP and not an EPP (an executive pension plan)? You do not need to be an executive to be in one of these. They are occupational schemes and it might explain the problem. A SIPP provider may be reluctant to take responsibility for the advice requirements for a transfer from an occupational scheme.

Alternatively as Dunston says it may be an occupational pension scheme, and not a GPP at all. I.e. "GPP" may stand for Group Pension Plan rather than Group Personal Pension.

Phone Allied Dunbar and ask.

david78

Sorry to post again. It turned out to be an EPP. So now she has asked an IFA from HL to provide her with advise and to help with the transfer (fixed fee of about £500).

However, my partner is concerned that there will be difficulties as the liquidator of the company is named as the scheme trustee on the "letter of authority" she got from allied dunbar. Should she be concerned? The pension plan was a money purchase plan and the money is held as investments by allied dunbar so I don't think it should be a problem. Can the trustee refuse to allow the transfer out? Also can she "sack" the trustee if necessary -- she is the only member.

David

Pal

No she cannot sack the Trustee. There should not be any problem anyway. If the scheme is money purchase and she is the only member, the Trustees should be more than happy to help her transfer out as it means that the pension scheme can be wound up once it is empty.

Best bet is to phone the Trustee and speak to them about what you want to do.